Thursday, February 5, 2009
Wednesday, February 4, 2009
Monday, January 19, 2009
Home Sales Up!!!!
Southern California Foreclosures Push Sales Higher (Update2)
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By Daniel Taub
Jan. 19 (Bloomberg) -- Southern California home sales rose 51 percent in December as a surge in foreclosures pushed prices of single-family houses and condominiums down from a year earlier, MDA DataQuick said.
A total of 19,926 new and existing houses and condos sold last month in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, up from 13,240 a year earlier, the San Diego-based research company said today in a statement. The median home price in the region fell 35 percent to $278,000.
“The markets that were part of the frenzy, that’s what’s in trouble now,” MDA DataQuick analyst John Karevoll said in an interview.
Foreclosures, which often sell at steep discounts, lured buyers as President-Elect Barack Obama worked on plans to revive the housing market using the second half of the $700 billion Troubled-Asset Relief Program. Lenders including Bank of America Corp., and financial institutions such as Goldman Sachs Group Inc. benefited from the government’s initial distribution of bailout money as their mortgage-related assets plunged in value.
Foreclosed homes accounted for 56 percent of Southern California’s December sales, more than double the amount a year earlier, MDA DataQuick said.
Such transactions made up almost 70 percent of sales in Riverside County, where the median price plummeted 41 percent to $209,000. Sales jumped 77 percent to 4,435, MDA DataQuick said.
The median price for all of Southern California plunged as a smaller proportion of properties changed hands near the coast and more were sold inland in areas including Riverside and San Bernardino, where mortgage defaults have surged.
Sales Up Everywhere
“What we’re seeing now is an awful lot of activity in markets with distress, and we’re seeing very little activity in markets without much distress,” Karevoll said.
Home sales increased in each of the six Southern California counties MDA DataQuick tracks. San Bernardino led the region with an 89 percent gain. That county also had the biggest price drop: 43 percent to a median of $180,000.
Los Angeles County showed the smallest rise in sales, with the number of deals climbing 32 percent from a year earlier. The median price dropped 32 percent to $320,000.
Prices fell the least in San Diego County, where the median declined 30 percent to $300,000, the research company said.
The most active lenders to Southern California homebuyers in December were Bank of America, its Countrywide unit, and Wells Fargo & Co., MDA DataQuick said.
The data provider is a unit of Richmond, British Columbia- based MacDonald, Dettwiler and Associates Ltd. It compiles its surveys using county records and supplies real estate information to public agencies, lenders and title companies among other customers.
Email | Print | A A A
By Daniel Taub
Jan. 19 (Bloomberg) -- Southern California home sales rose 51 percent in December as a surge in foreclosures pushed prices of single-family houses and condominiums down from a year earlier, MDA DataQuick said.
A total of 19,926 new and existing houses and condos sold last month in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, up from 13,240 a year earlier, the San Diego-based research company said today in a statement. The median home price in the region fell 35 percent to $278,000.
“The markets that were part of the frenzy, that’s what’s in trouble now,” MDA DataQuick analyst John Karevoll said in an interview.
Foreclosures, which often sell at steep discounts, lured buyers as President-Elect Barack Obama worked on plans to revive the housing market using the second half of the $700 billion Troubled-Asset Relief Program. Lenders including Bank of America Corp., and financial institutions such as Goldman Sachs Group Inc. benefited from the government’s initial distribution of bailout money as their mortgage-related assets plunged in value.
Foreclosed homes accounted for 56 percent of Southern California’s December sales, more than double the amount a year earlier, MDA DataQuick said.
Such transactions made up almost 70 percent of sales in Riverside County, where the median price plummeted 41 percent to $209,000. Sales jumped 77 percent to 4,435, MDA DataQuick said.
The median price for all of Southern California plunged as a smaller proportion of properties changed hands near the coast and more were sold inland in areas including Riverside and San Bernardino, where mortgage defaults have surged.
Sales Up Everywhere
“What we’re seeing now is an awful lot of activity in markets with distress, and we’re seeing very little activity in markets without much distress,” Karevoll said.
Home sales increased in each of the six Southern California counties MDA DataQuick tracks. San Bernardino led the region with an 89 percent gain. That county also had the biggest price drop: 43 percent to a median of $180,000.
Los Angeles County showed the smallest rise in sales, with the number of deals climbing 32 percent from a year earlier. The median price dropped 32 percent to $320,000.
Prices fell the least in San Diego County, where the median declined 30 percent to $300,000, the research company said.
The most active lenders to Southern California homebuyers in December were Bank of America, its Countrywide unit, and Wells Fargo & Co., MDA DataQuick said.
The data provider is a unit of Richmond, British Columbia- based MacDonald, Dettwiler and Associates Ltd. It compiles its surveys using county records and supplies real estate information to public agencies, lenders and title companies among other customers.
Sunday, January 18, 2009
First Time Homeowners Tax Credit is Actually a Loan by Gene Urban
We've had a few readers ask about the first time home buyers tax credit that is part of the 2008 Housing Rescue and Foreclosure Act (HR3221). It's a somewhat-helpful program where first-time (not really first time) home buyers can receive an income-tax credit on their home purchase. However, like much of the housing legislation passed this past year, there is a catch with this program.
Let's talk about the use of the term "first-time home buyer." This is erroneous since they define such a person as "someone who has not owned a home in the previous three years." Don't you just love government definitions? In addition, the home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.
The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income (MAGI) up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don't qualify.
If the amount of tax a home buyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund. They don't really get to keep the refund though and that is the "catch" we spoke of earlier.
The home buyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit. Home Buyers who sell their home before the credit is repaid must pay off the loan with their profits. If they sell the home at a loss, the loan is forgiven.
We hope this clears up some of the confusion and gives you some good water-cooler trivia to share with your work mates.
Let's talk about the use of the term "first-time home buyer." This is erroneous since they define such a person as "someone who has not owned a home in the previous three years." Don't you just love government definitions? In addition, the home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.
The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income (MAGI) up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don't qualify.
If the amount of tax a home buyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund. They don't really get to keep the refund though and that is the "catch" we spoke of earlier.
The home buyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit. Home Buyers who sell their home before the credit is repaid must pay off the loan with their profits. If they sell the home at a loss, the loan is forgiven.
We hope this clears up some of the confusion and gives you some good water-cooler trivia to share with your work mates.
How to Speed Up the Loan Modification Process
Foreclosure is always a race against time. Although a home loan modification can slow the process, you have fewer options the longer you wait. Not all lenders have the staff or experience to handle mortgage loan modifications. Even with a capable attorney, the process can drag on for months.
But you don't have to sit and wait. There are some things you can do to speed up the process. Once your home loan modification is under way, these steps can help you get more positive results.
1. Put everything on paper. It's not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don't have to let go of the originals.
2. Do your own financial statements. Part of every home loan modification is a financial worksheet, which will be your main basis for qualification. Most lenders have their own forms, but it won't hurt to make your own as well. If your lender insists on using their worksheet, at least you'll have all the information ready.
3. Be as detailed as possible. Too much information is better than too little, and it limits the chances that they'll call you for more information. A typical worksheet for a mortgage loan modification will include the following:
-Your contact information (address, home phone and work phone, fax and email) -Information about your property, including the estimated value -Your current income -Any additional income, such as welfare, child support, etc. -Your estimated total value, including other assets such as real estate, investments, savings and checking accounts, IRAs, 401(k), stocks and bonds -Liabilities, such as existing loans, monthly bills, medical expenses, and tax liens
4. Keep all your bills. The financial worksheet will require you to dig up old bills and hold on to the ones that keep coming. This will help you keep the information as accurate as possible. You may also need to present these bills (or copies of them) along with your hardship letter, which explains why you need a mortgage loan modification. Even if they don't ask for it, it's best to include them anyway. That way, there's no reason for your lender to doubt your statement. The more proof you have, the better your chances of getting that home loan modification.
Be sure to submit as much truthful and verifiable information to your loan modification attorney so they are able to compile the best case to submit you your lender.
But you don't have to sit and wait. There are some things you can do to speed up the process. Once your home loan modification is under way, these steps can help you get more positive results.
1. Put everything on paper. It's not uncommon for lenders, especially smaller ones, to lose track of your application. To prevent delays, make sure all your efforts are documented and kept on file. This includes all the calls you make and receive, both from your lender and loan modification attorney. Keep receipts of all your transactions, and make copies so you don't have to let go of the originals.
2. Do your own financial statements. Part of every home loan modification is a financial worksheet, which will be your main basis for qualification. Most lenders have their own forms, but it won't hurt to make your own as well. If your lender insists on using their worksheet, at least you'll have all the information ready.
3. Be as detailed as possible. Too much information is better than too little, and it limits the chances that they'll call you for more information. A typical worksheet for a mortgage loan modification will include the following:
-Your contact information (address, home phone and work phone, fax and email) -Information about your property, including the estimated value -Your current income -Any additional income, such as welfare, child support, etc. -Your estimated total value, including other assets such as real estate, investments, savings and checking accounts, IRAs, 401(k), stocks and bonds -Liabilities, such as existing loans, monthly bills, medical expenses, and tax liens
4. Keep all your bills. The financial worksheet will require you to dig up old bills and hold on to the ones that keep coming. This will help you keep the information as accurate as possible. You may also need to present these bills (or copies of them) along with your hardship letter, which explains why you need a mortgage loan modification. Even if they don't ask for it, it's best to include them anyway. That way, there's no reason for your lender to doubt your statement. The more proof you have, the better your chances of getting that home loan modification.
Be sure to submit as much truthful and verifiable information to your loan modification attorney so they are able to compile the best case to submit you your lender.
Saturday, January 17, 2009
How To Survive a Relocation
Relocating to a new and unfamiliar area with your family can be both challenging and rewarding. Whether you're moving to take advantage of an opportunity with a new company or relocating to accept a new position within your existing company, this is a time to reflect on what type of home and environment you want to raise your family in.
Before you take that first house-hunting trip, be sure to research the area you're planning to move to. For example, if your job is in the Downtown Los Angeles area, explore the areas surrounding downtown, such as Glendale, Burbank, Pasadena, and the Santa Clarita Valley.
In the Los Angeles area, the closer you get to downtown the higher the prices, even if the housing is tiny and unattractive. Therefore, most companies with relocating employees tell them to look first in the Santa Clarita area, where they'll find lower prices, highly-rated schools and clean, newer neighborhoods. The same is true for many big-city suburbs, so be sure to expand your home search to at least a 20-mile radius from your new job location.
If your company is relocating you, be sure to check with your relocation department to verify what services they'll provide as well as any restrictions you may need to work with. Some relocation departments will handle everything internally, and some will contract out to a relocation company to handle all of the details.
Be aware that many relocation companies will initially insist that you use a Realtor of their choice for both selling your current home and buying your new home, but will usually back down when you insist on using a Realtor of your choice in your new location. This is because the relocation companies offset their costs by claiming a percentage of the Realtor's commissions.
Your investigations into your new hometown should include housing prices, quality of life standards and schools. Explore the websites and blogs of Realtors local to that area to get a feel for the neighborhoods, and do some online home searches to determine what your money can buy in each area. Once you've "interviewed" Realtors online via their websites and blogs, make a few phone calls to see if they will help you with your relocation research. A good relocation Realtor should be able to help you explore your new area by providing articles and resources about the area as well as emailing you some homes to consider, so you'll be able to get more comfortable with your new hometown before you arrive.
Questions you may want to ask include:
What are the crime statistics for the area?
What is the quality of schools in the area?
Do the property taxes include an special assessments, such as Mello Roos taxes?
Does the area include a homeowners association (HOA)? If so, what are the monthly dues, and what do they cover?
Are there any restrictions in this area, such as on-street or RV parking?
What type of public transportation is available to commuters?
Why other features or benefits does this area have to offer?
If you're relocating to the Los Angeles area, be sure to visit the Santa Clarita Real Estate Blog. You'll find neighborhood information as well as home searches for the entire Los Angeles region, with a focus on the Santa Clarita area. Santa Clarita includes the towns of Valencia, Stevenson Ranch, Newhall, Saugus, Canyon Country and Castaic.
Before you take that first house-hunting trip, be sure to research the area you're planning to move to. For example, if your job is in the Downtown Los Angeles area, explore the areas surrounding downtown, such as Glendale, Burbank, Pasadena, and the Santa Clarita Valley.
In the Los Angeles area, the closer you get to downtown the higher the prices, even if the housing is tiny and unattractive. Therefore, most companies with relocating employees tell them to look first in the Santa Clarita area, where they'll find lower prices, highly-rated schools and clean, newer neighborhoods. The same is true for many big-city suburbs, so be sure to expand your home search to at least a 20-mile radius from your new job location.
If your company is relocating you, be sure to check with your relocation department to verify what services they'll provide as well as any restrictions you may need to work with. Some relocation departments will handle everything internally, and some will contract out to a relocation company to handle all of the details.
Be aware that many relocation companies will initially insist that you use a Realtor of their choice for both selling your current home and buying your new home, but will usually back down when you insist on using a Realtor of your choice in your new location. This is because the relocation companies offset their costs by claiming a percentage of the Realtor's commissions.
Your investigations into your new hometown should include housing prices, quality of life standards and schools. Explore the websites and blogs of Realtors local to that area to get a feel for the neighborhoods, and do some online home searches to determine what your money can buy in each area. Once you've "interviewed" Realtors online via their websites and blogs, make a few phone calls to see if they will help you with your relocation research. A good relocation Realtor should be able to help you explore your new area by providing articles and resources about the area as well as emailing you some homes to consider, so you'll be able to get more comfortable with your new hometown before you arrive.
Questions you may want to ask include:
What are the crime statistics for the area?
What is the quality of schools in the area?
Do the property taxes include an special assessments, such as Mello Roos taxes?
Does the area include a homeowners association (HOA)? If so, what are the monthly dues, and what do they cover?
Are there any restrictions in this area, such as on-street or RV parking?
What type of public transportation is available to commuters?
Why other features or benefits does this area have to offer?
If you're relocating to the Los Angeles area, be sure to visit the Santa Clarita Real Estate Blog. You'll find neighborhood information as well as home searches for the entire Los Angeles region, with a focus on the Santa Clarita area. Santa Clarita includes the towns of Valencia, Stevenson Ranch, Newhall, Saugus, Canyon Country and Castaic.
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